e to set up all ice
pulled in storage house as directed.
Cost of Ammonia at 2 cent per ton $ 1,600.00
Cost of Oil and Waste at 2 cent per ton $ 1,600.00
Cost of Water at 3 cent per ton $ 2,400.00
Cost of Salt at 72 cent per ton $ 400.00
Plant Maintenance and Repairs $ 3,500.00
or 3500 / 80000 = 4.37 cent per ton
OFFICE EXPENSES:
1 Manager and Salesman, per year $ 5,000.00
1 Bookkeeper, per year $ 2,400.00
Stationery, Telephone, etc $ 600.00
Total Cost $ 8,000.00
or 8000 / 80000 = 10 cent per ton
[3]
OVERHEAD CHARGES:
8 per cent interest on
$350,000.00 investment $ 28,000.00
8 per cent interest on
value of land ($20,000.00) $ 1,600.00
8 per cent interest on
$10,000.00 working capital $ 800.00
3 per cent depreciation on
$350,000.00 $ 10,500.00
Insurance (estimated) $ 1,500.00
Taxes (estimated) $ 3,500.00
Total $ 45,900.00
or 45900 / 80000 = 57.375 cent per ton
Total Expense $134,570.00
or 134570 / 80000 = $1.68.215 per ton
Divided as follows:--
Manufacturing cost including office expense $ 1.10.840
Overhead charges $ 0.57.375
ICE SALES ASSUMPTIONS:
Month Ice Ice sold Ice stored Ice Sold Total Ice
produced direct per day from storage stored in 30
per day per day daily days
January 240 65 175 5250
February 240 65 175 5250
March 240 115 125 3750
April 240 165 75 2250
May 240 300 60
June 240 400 160
July 240 400 160
August 240 400 160
September 240 350 110
October 240 200 40 1200
November 240 140 100 3000
December None 65 65
Tons 20700
Less Tons 1950
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